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Due to the lockdown, the first time in 11 years the UK has entered into recession

DevibyDevi
2020/12/13 14:12
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Due to the lockdown, the first time in 11 years the UK has entered into recession

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The British economy experienced the biggest slump in the April to June period.

Based on this report, this is a result of the application of regional quarantine regulations to reduce the spread of the coronavirus.

Thus, causing the country to officially experience a recession.

The UK economy shrank 20.4% compared to the first three months of this year.

Read More

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Household spending plunged as shops were ordered to close, while factory production and construction also fell.

This condition pushed the UK into its first technical recession.

The UK’s Office for National Statistics (ONS) said the economy bounced back in June.

The movement restrictions imposed by the government began to decrease which led to the economic revival.

The ONS said the decline in the services sector was driven by the closure of shops, hotels, restaurants, schools, and auto repair shops.

The service sector, which powers four-fifths of the UK economy, saw the biggest decline on record in a quarter.

The hotel sector has also been hard hit, while factory closings have resulted in the slowest car production since 1954.

Rishi Sunak, UK Finance Minister, said the economic downturn will cause more people to lose their jobs in the coming months.

Tags: British economyCovid-19recession

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